thai airwaysthai airways international plinternational...
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THAI AIRWAYSTHAI AIRWAYSTHAI AIRWAYS THAI AIRWAYS INTERNATIONAL PlINTERNATIONAL PlINTERNATIONAL Plc.INTERNATIONAL Plc.
(Year 2008)(Year 2008)
Investor Relations Department1
Table of ContentsTable of Contents
1. The Companyp y
2. Statistical Information
3. Tentative Aircraft Delivery
4. Financial Performance
5. Going Forward
Investor Relations Department2
The Companyp y
Shareholders
Ministry of FinanceOther Shareholders
Shareholders
y51.03 %
Chase Nominees
26.90 %
Limited 2.16 %2.16%
• Registered Capital : 17,000 mnVayupak Fund 1 (MFC)8 59 %
Vayupak Fund 1 (Krung Thai)
Government Saving Bank2.73 %
• Par Value (THB) : 10 • Issued and paid-up : 16,989 mn
8.59 %Thai)8.59 %
Investor Relations Department4
• Market Capitalization: 13,175 mn
The Company
THAI’s OperationsTHAI’s Operations
e Co p y
1. Aviation Business
- Passenger Transportation
THAI s OperationsTHAI s Operations
- Passenger Transportation
- Cargo and Mail Transportation
2. Business Units Related to Air Transport2. Business Units Related to Air Transport
- Ground Customer Services
- Ground Support Equipment Servicespp q p
- Cargo and Mail Commercial Services
- Technical Services
3. Transport Support Activities
- Dispatch Service
Investor Relations Department5
- Sale of Duty Free Goods on Board
- Sale of Souvenir Products at THAI Shops
The Company
THAI’s Facilities at SuvarnabhumiTHAI’s Facilities at Suvarnabhumi
p y
Aircraft MaintenanceAircraft Maintenance
THAI s Facilities at SuvarnabhumiTHAI s Facilities at Suvarnabhumi
• Covers 24,300 square meters is the largest maintenance hangar in Southeast Asia for A380
Ground Customer ServiceGround Customer Service• Covering 16,000 square meters provides customers with a full range of customer services and facilities to facilitate customer service.
CateringCatering• Quality and Food Safety Management System• Semi-Automation Equipment• Custom Free Zone• Quality of food and services
Investor Relations Department 6
• Quality of food and services• Hygiene of food & production• Safety of food
The Companyp y
THAI’s Facilities at SuvarnabhumiTHAI’s Facilities at SuvarnabhumiOperations Center
• Crew Terminal• Crew Center
THAI s Facilities at SuvarnabhumiTHAI s Facilities at Suvarnabhumi
Crew Center• Ground & Flight Operations Center• THAI city Headquarter• Landmark
Ground Support Equipment• Environment Revolution• Maintenance Shop Under One Roof• Maintenance Shop Under One Roof• New Modern Maintenance Equipment• Enhancement Superior Quality & safety
C & M ilCargo & Mail• Capacity Over 1 Million Tons/Year• Zoning Operation• Future Expansion
Investor Relations Department7
Future Expansion• Semi-Automation/modern Equipment• Cargo Custom Free Zone
The Company
Subsidiaries and Associated Companies
p y
Subsidiaries and Associated Companies
Shareholding Business TypeName of Company g yp
55.0% Reservation Servicep y
1. Thai-Amadeus Southeast Asia Company Limited2. Royal Orchid Hotel (Thailand) Public Company Limited 24.0% Hotel3. Donmuang International Airport Hotel Company Limited 40.0% Hotel4. Suvarnabhumi Airport Hotel Company Limited 30.0% Hotel & Services5 Bangkok Aviation Fuel Service Public Company Limited 22 6% Fuel Service5. Bangkok Aviation Fuel Service Public Company Limited 22.6% Fuel Service
30.0% Catering Service6. Phuket Air Catering Company Limited
Investor Relations Department8
39.0% Low Cost Flight Service7. Nok Air Company Limited
The Company
DomesticDomestic InternationalInternationalDestinationsDestinations
p y
DomesticDomestic InternationalInternational12 Destinations / 331 Flights / Week
• North (4 Destinations)62 Destinations / 553 Flights / week
Routes Countries Destinations( )
- Chiang Mai * - Phitsanulok
- Chiang Rai * - Mae Hong Son
Routes Countries DestinationsRegional 20 43 Northern 5 15g g
- Khon Kaen - Udon Thani
• Northeast (3 Destinations)
Southern 4 5 Indochina 3 4
W t 5 16- Ubon Ratchathani
• South (5 Destinations)
Western 5 16 Middle East 3 3Intercontinental 14 19
- Hat Yai* - Surat Thani
- Phuket * - Krabi
North Pacific 1 1 Europe 10 12
A t li & N Z l d 2 5
Investor Relations Department9
- Samui * Remark : International Airport
Australia & New Zealand 2 5 South Africa 1 1
The Company
A f DAircraft FleetAircraft FleetType of Aircraft Owned Operating Lease Total B 747 400 18 18
As of Dec. 2008Aircraft FleetAircraft Fleet
B 747-400 18 - 18 B 777-300 6 - 6 B 777-200 5 3 8 B 777-200ER 6 - 6 B 737-400 6 4 10
A 300 600 17 17 A 300-600 17 - 17 A 340-600 6 - 6 A 340-500 4 - 4 A 330-300 10 2 12 ATR72* 2 - 2
Investor Relations Department10
Total 80 9 89* NOTE : 3 B737-400 aircraft lease to Nok Air
The Company
Star Alliance (The Way the Earth Connects)
p y
( y )Founding Members Founding Members Member CarriersMember Carriers Regional CarriersRegional Carriers
- Air Canada - Air China - Air New Zealand - Adria Airways
- Lufthansa
- Scandinavian Airlines
- ANA - Asiana Airlines
- Austrian - Bmi
- Blue 1
- Croatia Airlines- Scandinavian Airlines
- Thai Airways
- Austrian Bmi
- Egypt Air - LOT Polish Airlines
- Croatia Airlines
- United Airlines - Shanghai Airlines - Singapore Airlines
- South African Airways - Spanair
- Swiss - TAP Portugal
- Turkish Airlines
Investor Relations Department11
- US Airways
22. Statistical Information. Statistical Information22. Statistical Information. Statistical Information
Investor Relations Department12
Statistical InformationStatistical InformationStatistical InformationStatistical Information
• Destinations : Domestic = 12
International = 62te at o a 6
• Continents served : 5
• Total aircraft in fleet : 89 of which 3 are leased to Nok Air
• Flight frequency per week : International Routes 553 Flts/Week
Domestic Routes 331 Flts/Week
• Monthly passengers carried : 1.56 million averageMonthly passengers carried : 1.56 million average
• Staff count : 27,193
Investor Relations Department13
• Core Staff : 12,708
Statistical InformationStatistical InformationStatistical InformationStatistical Information
2007 2008 % ChangePassenger revenue earned (MTHB) : 160,558 164,319 2.3 Milli A il bl S t K (MASK) 78 048 75 391 3 4 Million Available Seat Kms. (MASK) : 78,048 75,391 3.4- Million Revenue Passenger Kms. (MRPK) : 61,619 56,377 8.5- o eve ue sse ge s. ( ) : , ,Average Cabin factor (%) : 78.9 74.8 5.2- Average Freight load factor (%) : 54.60 55.20 1.1
Investor Relations Department14
Average Load factor (%) : 70.3 68.2 3.0-
Statistical InformationStatistical Information
70 383 72,22278,048 75,39180,000
ASK,RPK (Million)
Statistical InformationStatistical Information
70,383 ,
50,04055,512
61,620 56,375
40,00050,00060,00070,000
,
ASK d d b 3 40%
Years Years 2005 2005 -- 20082008
-10,00020,00030,000
,• ASK decreased yoy by - 3.40%
• RPK decreased yoy by - 8.51%2005 2006 2007 2008
ASK RPK
85Unit : (%)
71 1
76.86
74.78
78.95
75
80
85
Fact
or • 2008 affected by global economic & d ti liti l f t71.1
65
70
Cab
in F domestic political factors
• Still strong compared to normal year
Investor Relations Department15
602005 2006 2007 2008
33. Tentative Aircraft. Tentative Aircraft33. Tentative Aircraft . Tentative Aircraft DeliveryDeliverye ve ye ve y
Investor Relations Department16
Tentative Aircraft DeliveryTentative Aircraft Deliveryyy
Aircraft Delivery Schedule
2007 2008 2009 2010 2011 TOTAL
ADDITIONAL AIRCRAFT(According to delivery schedule) 2007 2008 2009 2010 2011 TOTAL
A380 - - - - 6 6
A340-600 - 1 - - - 1
A330-300 - - 6 2 - 8
TOTAL - 1 6 2 6 15
Investor Relations Department17
Current IssuesCurrent Issues
Fuel & Fuel Surcharge
• Fuel hedging up to 50% of full year’s demand but flexible
• Fuel hedging approximately 42% on 3 months basis
• Hedging position subject to fuel price trend
• Fuel surcharge : Intercontinental – USD 64.5- 89.5 per sector
Regional – USD 14.5 - 49.5 per sector
Domestic – THB 400 per sector
• No official guideline for fuel surcharge reduction
Investor Relations Department18
44. Financial Performance. Financial Performance44. Financial Performance. Financial Performance
Investor Relations Department19
Financial Performancea c a e o a ce
Revenue Breakdown (Year’07)
Revenue Breakdown (Year’08)
Other Activities
4.66%Other
Interest income0.37%Mail
0 49%
Other Activities4.46%
Other0.98%
Interest income0.24%
1.13%0.49% Mail
0.45%
Passenger80.31%
cargo13.03%
Passenger
cargo12.75%
Passenger81.10%
Investor Relations Department20
Financial Performance
Passenger Revenue (Years 2005 2008)
Financial Performance
Passenger Revenue (Years 2005-2008)Units : THB mn
167,626 186,278199,921
202,606200,000
250,000 • 7.79% CAGR for Total Revenue
• 6.52% CAGR for Passenger 131,203 146,154
160,558 164,319
100 000
150,000
g
Revenue
• Total revenue increased yoy by
50,000
100,0001.34% (2008 over 2007)
• Passenger revenue increased yoy -
2005 2006 2007 2008
Total Revenue Passenger Revenue
by 2.34%(2008 over 2007)
Investor Relations Department21
Financial Performance
Operating Expense (Years 2005 2008)
Financial Performance
Operating Expense (Years 2005-2008)
Units : THB mn
• Total expense increased yoy by 17%
• Personnel expense decreased yoy155,892168 638
188,656220,720
200 000
250,000
Personnel expense decreased yoy
by 7.57%
F l i d b 42 88%
168,638
100 000
150,000
200,000
• Fuel cost increased yoy by 42.88%
• Depreciation increased yoy by 11.77%
f d i i f d i i i d
50,000
100,000
from reducing aircraft depreciation period
to 15 years
-2005 2006 2007 2008
Total Expense
Investor Relations Department22
Financial Performance
EBIT, EBITDA and Net Profit
Financial Performance
40,000
EBIT, EBITDA and Net ProfitUnits : THB mn
22,90524,000
28,477
20 000
30,000
8,860 7,952 10,234 13,619
4,869
9,208 4,36810,000
20,000• Fuel cost the main culprit for disappointing performance
-6,662-10,000
-2005 2006 2007 2008
,
-21,379-30,000
-20,000
Investor Relations Department23
EBIT EBITDA Net Profit
Financial PerformanceInterest Coverage Ratio
U it THB Times
Financial Performance
13,61928,47724,00022,905
9 0007.0
gUnits : THB mn Times
5 4854 9264 547
5.4 5.85.0
7,000
9,000
5.0
6.0
5,4854,9264,4704,547
2.53 000
5,000
3.0
4.0
1,000
3,000
1.0
2.0
-1,000 2005 2006 2007 2008 0.0
EBITDA Interest Expense ICR
Investor Relations Department24
EBITDA Interest Expense ICR
*Note : ICR =EBITDA / INTEREST EXPENSE
Financial Performance
Net Debt/Equity Ratio
a c a e o a ce
139147
6.0
Times
Net Debt/Equity RatioUnits : THB mn
136 136 139
120
140
5.0
6.0
6067 68
462 0
3.280
100
3.0
4.0
462.3 2.0
2.0
20
40
60
1.0
2.0
0
20
2005 2006 2007 20080.0
Investor Relations Department25
Net Debt Equity Net D/E Ratio
Going Forward
R M i i i O i i i fli h fi bl
Going Forward
• Revenue Maximization - Optimizing flights to profitable routes
- Flexible pricing
- Proactive marketing
- Review less profitable routes
• Network Development - Reduce redundant capacity through synergy
• Ensure Ongoing Operation Excellence - Highest level of safety
- Unsurpassed service quality
- Timely service
Investor Relations Department27
• Enhance Asset Management and Undertake Restructuring